The Demand for data center capacity for AI in Europe has soared by 2025 to tripleas emerging AI infrastructure providers, known as neoclouds, accelerate their expansion, in a framework in which hyperscalers such as AWS, Google or Azure are slowing down their activity. This is according to a study by CBRE, a company dedicated to consulting and managing real estate services.
This company points out that contracts signed for co-location capacity focused on AI reached 414 Megawatts between January and September 2025, a more than notable increase compared to the same period last year, when they stood at 133 Megawatts.
The report also indicates that more than half of this capacity, specifically 57%, was contracted in the Nordic countries. In addition, he points out that this growth signals a change in the sector, since the demand for hyperscalars has moderated, something that, however, for CBRE is temporary.
Apart from this, the consultancy highlights that neocloud providers are ensuring large-scale capacity, with the aim of being able to satisfy the needs of applications that use AI, which are increasing.
Neocloud clouds are highly specialized, and unlike hyperscalar clouds, they do not offer a wide variety of digital services. They are dedicated almost exclusively to computing capacity with high graphic performance.
They therefore mainly deal with infrastructures with GPUs, which are designed to support AI workloads. Its main offering focuses on GPUs as a service, or platforms to develop content generation models. Among the main companies that receive the neocloud label are CoreWeave, Crusoe, Lambda, Nebius and the ubiquitous OpenAI.
All of this means that data center operators in Europe are applying measures to manage the added risk associated with renting to neocloud companies. Among these measures is a higher Price in rental rates, with the aim of offsetting the costs of building data centers, as well as ensuring the profitability of its AI-ready facilities.
Andrew Jay, Director of European Data Center Solutions at CBREhas stated that «Neoclouds have expanded their presence in Europe this year, absorbing empty space that was originally intended for hyperscalars. It’s a sign that many data center providers are becoming more comfortable with the ambitions of neocloud providers and the deals that come with them.«.
Kevin Restivo, Director of European Data Center Research at CBREadded that «neocloud providers are acquiring AI-specific capacity at scale in Europe. We see huge growth in this segment, especially in the Nordic countries, where renewable energy is often available at a lower cost and in greater abundance than in many other European markets.«.
